Winning a contract for the installation of submarine power cable between the Indonesian islands of Java and Bali

Sumitomo Corporation (President and CEO: Susumu Kato, Headquarters: Chuo-ku, Tokyo; hereinafter "Sumitomo") and J-Power Systems Corporation (President: Sadao Fukunaga, Headquarters: Minato-ku, Tokyo; hereinafter "JPS"), concurrently with the Indonesian branch of the Royal Boskalis Westminster N.V. (Chairman of the Board of Management: Dr. P.A.M. Berdowski, Headquarters: Papendrecht, the Netherlands; hereinafter "Boskalis"), one of the world largest companies in the offshore engineering industry, have won a contract to install submarine power cables between the Indonesian islands of Java and Bali from the Indonesia State Electricity Corporation PT. PLN (Persero) (hereinafter, "PLN").

This is a full turnkey project worth approximately 4 billion yen for the installation of two 150 kV submarine power cables of about 5 km in length between the islands of Java and Bali and two 150 kV underground power cables of about 2.5 km in length in Bali. Sumitomo will oversee the general commercial aspects of the project, while JPS will provide submarine and underground power cables and Boskalis Indonesia will conduct the installation.

With peak demand at about 550 MW, Bali currently suffers a constant shortage of power, obliging PLN to request users to conserve power and to schedule blackouts when existing power generation facilities are due for inspection. This project will provide enough additional power to solve Bali's shortage and facilitate the further development of the world-famous tourist destination, which attracts around 2.3 million tourists each year.

The Japanese government will make yen loans available for a separate project for the construction of submarine and other power lines to connect currently independent transmission systems on the islands of Java and Sumatra. Together, these two projects are expected to facilitate the stable supply and efficient use of electricity in major Indonesian cities by connecting transmission systems from Sumatra to Bali via Java.

Sumitomo and JPS have jointly provided a number of power cables for regions outside Japan, mainly in Asia and the Middle East. With a number of submarine power cable renewal and installation projects currently being planned around the world, Sumitomo and JPS will continue to actively promote submarine power cable installation projects.

*the installation of submarine power cables (for reference)